CMC Markets Posts Record Net Operating Income in FY2026, Eyes Institutional Scale in FY2027

§ 01 Executive Snapshot

• What: CMC Markets reported record financial performance for FY2026 with significant growth in net operating income and profit.
• Who: CMC Markets, Westpac, ASB Bank, Currys, and a major international bank involved in institutional partnerships.
• Why it matters: The results signify a strong recovery post-COVID and indicate CMC's strategic shift towards institutional scale and B2B revenue growth.

§ 02 Key Developments

• Net operating income for FY2026 reached £392.6 million, a 15% increase from £340.1 million in FY2025.
• Profit before tax rose 20% to £101.3 million, with a pre-tax margin of 25.8%.
• The full-year dividend was increased by 21% to 13.8 pence per share, aligning with a 50% profit distribution policy.
• The stockbroking business in Australia generated net operating income of A$140.3 million, up 32% year-on-year.
• CMC Markets guided for net operating income of £460 million to £480 million for FY2027, indicating growth of at least 17%.

§ 03 Strategic Context

• CMC Markets has seen a recovery in performance since FY2021, driven by a focus on institutional and B2B partnerships amid changing market dynamics.
• The company is leveraging its proprietary technology infrastructure to expand its offerings and enhance scalability through white-label solutions.

§ 04 Strategic Implications

• Immediate implications include strengthened market position and competitive advantage through successful partnerships and technology adoption.
• Long-term implications involve a shift towards institutional scale, which may lead to increased market share and diversified revenue streams.

§ 05 Risks & Constraints

• Potential regulatory challenges could impact the rollout of new partnerships and technology infrastructure.
• Competition in the institutional trading space may pose risks to market share and profit margins.

§ 06 Watchlist / Forward Signals

• The launch of the Westpac and ASB Bank white-label partnerships is expected within the next 12 months, which will be a critical milestone for CMC.
• Monitoring the progress of the Tier 1 institutional partnership and the rollout of the multi-asset Super App will indicate future growth potential.